Hard Money Loans in Spokane Valley
A fabulous buy on a fix and flip opportunity in a good area of the city suddenly shows up — seems so good that it's hard to believe. Many people know that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 in their rehab business. And indeed, they are aided in a big way via their professional experience, auction expertise and understanding of hard money loans. Having said that, you have also been brushing up your rehab and renovation skills, have got a licensed contractor ready for the project and are certain that you can do a great job for this property.
But funding is often a different issue altogether. For those who meet with a customary lending institution, such as a bank for a mortgage loan, it's likely going to take a minimum of 4-8 weeks for your approval to come through and your money to be furnished. Thus if you are hoping for a fast closing, it is important to understand that this may set you back by a couple weeks, causing you to lose out on the opportunity.
With banks adding harder loan requirements in the last few years, it is now tougher for a self-employed individual to get a mortgage loan, particularly if his credit situation is not optimal. So should you give up and forego your aspiration to get into the real estate market? Certainly not, considering that you can always go the Spokane Valley hard money loan route to fund your rehab project.
A hard money home loan in Spokane Valley boasts what's probably most important to real estate investors — a quick closing time of as little as 14 days. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as determined by a credentialed third-party appraiser. With the interest rates starting near 10%, hard money real estate loans might appear, at first glance, to be more costly when compared with traditional bank financing. But if you consider these are not long-term home loans, the interest rate tends to be misleading. The price of such short-term loans ought to be considered on par with every other expense that you would have to meet for the project. Right after you remodel and unload the house, recuperating this expense is no different than recovering the cost of the new kitchen appliances you placed into the property.
Aside from that, hard money mortgages are not hard to qualify for, even if you have poor credit. Instead of focusing exclusively on the person's credit score or net income, Spokane Valley hard money lenders, who may be a private company or an individual, say yes to a loan after assessing the property value, ease of marketability, where it is located, and the probability of recuperating their capital in case they have to foreclose the loan. Additional variables that impact a customer's eligibility for a hard money real estate loan can include how much money he is in a position to put into a down payment, his previous experience as a real estate investor, and selling price of similar, recently sold homes in the area.
Searching for a hard money lender in Spokane Valley to fund your fix and flip endeavor is not difficult, so long as the opportunity before you is promising and has a strong prospect for returns. Complete the form or give us a call to discuss your project.